Shutters may be down for Reliance Retail in some cities but it's aggressively expanding in small towns. It has already acquired half its land needs.

It may not be business as usual in UP and Orissa, but that hasn't stopped Reliance Retail's land acquisitions. Reliance Retail is expanding in small towns at 25 million square feet a year and it has already acquired 50% of its land requirements. It has bought land in small towns like Ludhiana, Indore and Shivkasi.

Company officials say their move into small towns will not be limited to retail outlets. The company is in talks to buy old or out-of-business cinema halls and convert them into education centers by day and movie-halls by night. Officials say this will help bring in crowds to retail outlets in the complex, as well.

Reliance Retail officials say they plan to enter towns with a population of over 50,000 people. The company will expand into 784 cities and expects to launch in 119 cities by December 2008.